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MINUTES MONTANA SENATE 54Th LEGISLATURE MINUTES MONTANA SENATE 54th LEGISLATURE "- REGULAR SESSION COMMITTEE ON FINANCE & CLAIMS Call to Order: By SENATOR GARY AKLESTAD, Chairman, on Monday, April 3, 1995, at 8:00 a.m., Room 325. ROLL CALL Members Present: Sen. Gary C. Aklestad, Chairman (R) Sen. Thomas F. Keating, Vice Chairman (R) Sen. Thomas A. "Tom" Beck (R) Sen. James H. "Jim" Burnett (R) Sen. Loren Jenkins (R) Sen. Ethel M. Harding (R) Sen. Arnie A. Mohl (R) Sen. Charles "Chuck" Swysgood (R) Sen. Daryl Toews (R) Sen. Larry J. Tveit (R) Sen. B.F. "Chris" Christiaens (D) Sen. Eve Franklin (D) Sen. Judy H. Jacobson (D) Sen. Greg Jergeson (D) Sen. John "J.D." Lynch (D) Sen. Mignon Waterman (D) Members Excused: None. Members Absent: None. Staff Present: Taryn Purdy, Principal Fiscal Analyst Lynn Staley, Committee Secretary Please Note: These are summary minutes. Testimony and discussion are paraphrased and condensed. Committee Business Summary: Hearing: HB 5, HB 584, HB 594, HB 595, Executive Action: HB 595 HEARING ON HOUSE BILL 5 Opening Statement by Sponsor: REPRESENTATIVE ERNEST BERGSAGEL, House District 95, Malta, sponsor, indicated that HB 5 appropriates money for capital projects for the biennium ending June 30, 1997 and would provide 950403FC.SM1 SENATE FINANCE & CLAIMS COMMITTEE April 3, 1995 Page 2 of 33 for a maintenance allowance based upon a percentage of construction. REPRESENTATIVE BERGSAGEL summarized the projects in HB 5 and indicated that because of events happening with the building program, HB·5 should be sent to a conference committee. There also will be a needed amendment to the bill because of HB 349 by REPRESENTATIVE RANEY relating to Tongue River Dam funds. Proponents' Testimony: Bob Stephens, Montana Grain Growers' Association, testified in support of HB 5, specifically allowing construction of the bioscience facility in Bozeman. Opponents' Testimony: None. Questions From Committee Members and Responses: When questioned by SENATOR SWYSGOOD why the Ruby Dam study was taken off the list, REPRESENTATIVE BERGSAGEL said most of the money was needed for the Tongue River Dam, which is why the Nevada Creek Dam and Ruby River Dam study were taken from the list. He maintained that those facilities would probably be looked at in the next legislative session. SENATOR WATERMAN questioned if $560,000 listed on page 2, line 16 is for the Correctional boot camp and $1.5 million is for the Montana State Prison expansion. REPRESENTATIVE BERGSAGEL said that was correct and that it is federal special revenue. SENATOR WATERMAN asked if a commitment is being made with the expansion money that the boot camp will be moved to the Prison or if the money would be used regardless of where the boot camp was located. REPRESENTATIVE BERGSAGEL said that was correct. The language was changed so if it was moved, it would not have to be changed again. When asked by SENATOR WATERMAN if that decision would be made within the Department, REPRESENTATIVE BERGSAGEL said it was his understanding that the Department had the authority to do that, but he was unsure where the money would be obtained to do it. There is $2 million of bonding authority remaining from last session, with some discussion regarding using that authority for the construction of that site. 950403FC.SM1 SENATE FINANCE & CLAIMS COMMITTEE April 3, 1995 Page 3 of 33 In questioning from SENATOR WATERMAN as to the cost of construction at the Lake Connelly site, REPRESENTATIVE BERGSAGEL said it would be close to $2 million. SENATOR KEATING questioned the funding source for the long range building program (LRBP) account. REPRESENTATIVE BERGSAGEL said cigarette tax money contributes approximately $4.9 million of revenue to the account. State special revenue is approximately $25 million. There is approximately $64 million of federal special spending, such as the Billings Armory, the Bioscience building, any federal monies associated with Fish, Wildlife and Parks. There is approximately $11 million in private donations associated with HB 5. When asked by SENATOR KEATING how much money was being appropriated out of LRBP in HB 5, REPRESENTATIVE BERGSAGEL said it was $105 million. In questioning from SENATOR KEATING if the column headed "LRBP" in HB 5 is cigarette tax money, REPRESENTATIVE BERGSAGEL said that was correct. SENATOR KEATING questioned the language in the Title of HB 5 regarding the repeal of Section 23, Chapter 624, Laws of 1993. REPRESENTATIVE BERGSAGEL related that in the latter part of the 1993 session he found that a law stating that we would put up one percent of the money on new construction for art in buildings. He questioned that could be done in new construction but that the money could not be put away for maintenance. Language has now been changed to minimize the amount of money to be used for art, and he indicated that two percent would be put aside for maintenance for those facilities. When questioned by SENATOR KEATING if this would repeal that section of law, REPRESENTATIVE BERGSAGEL said it is an exemption for the bills that are in the 1995 building program. In questioning from SENATOR KEATING whether all the money has been used, REPRESENTATIVE BERGSAGEL said the entire building program of approximately $160 million. SENATOR KEATING asked if the LRBP account is being drained or whether there is a balance. REPRESENTATIVE BERGSAGEL said that is drained every session. He noted that there is $4.7 million of cigarette tax money for a $300 million problem. When questioned by SENATOR BURNETT regarding the allocations for the Bluewater Hatchery, REPRESENTATIVE BERGSAGEL said HB 349 has a $2.5 million proposal for that hatchery. Associated with that proposal is construction or renovation of some housing, garages 950403FC.SMI SENATE FINANCE & CLAIMS COMMITTEE April 3, 1995 Page 4 of 33 and water raceways. It is important to save the source of water for the hatchery, and approximately $1.1 million will be used for the renovation of that water source. There will be a reallocation of part of' those monies for river restoration, being natural and stream bank restoration. There is approximately $1 million allocated to the Tongue River Dam from Fish, wildlife and Parks. They a~e going to take a certain percentage of these monies for fishery restoration, and they will use that in the Tongue River Basin. SENATOR BECK questioned the status of the pharmacy addition at the University of Montana which is shown on page 5, line 12. REPRESENTATIVE BERGSAGEL said LRBP looked at whether new facilities should be constructed when existing ones could not be taken care of. The Governor approved $2 million of bonding authority for the State of Montana, and there was $2 million of private donations for the pharmacy addition. When it came before LRBP, it went from a $4 million project to a $10 million project. They wanted to use $2 million of bonding authority with the remainder being private donations. The project had not gone through a review process with Architecture and Engineering (A&E) Because there was no chance for the legislature to review the project, it was pulled out. After SENATOR BECK stated his position that with private donations the University should have the opportunity for the addition, REPRESENTATIVE BERGSAGEL said if the university is allowed to build a pharmacy building with tot~l private funds and no bonding for the state, the total amount of the project should be included in HB 5 so they can complete the facility. SENATOR WATERMAN questioned if two percent would be allocated for maintenance with passage of HB 5. REPRESENTATIVE BERGSAGEL said it was his understanding that up to one percent of monies for arts and two percent for maintenance. He hoped that a revolving account would be set up for maintenance for building statewide, a bonding proposal for major maintenance and repairs. When asked by SENATOR WATERMAN what his impression of minimizing the allocation for art meant, REPRESENTATIVE BERGSAGEL said his original language was to eliminate it. After consideration, minimizing would mean it had to be approved by A&E who he stated recognizes the maintenance needs for the state of Montana. SENATOR WATERMAN voiced concern with minimizing art in the state. REPRESENTATIVE BERGSAGEL concluded that while he could almost agree with that, there is $4.7 million to do a $300 million project, and the funds are not available. 950403FC.SM1 SENATE FINANCE & CLAIMS COMMITTEE April 3, 1995 Page 5 of 33 Closing by Sponsor: REPRESENTATIVE BERGSAGEL closed on HB 5. HEARING ON HOUSE BILL 584 Opening Statement by Sponsor: REPRESENTATIVE ERNEST BERGSAGEL, House District 95, Malta, sponsor, presented HB 584, appropriating funds for the law enforcement academy project. Proponents' Testimony: SENATOR DON HARGROVE, Gallatin County, presented an amendment to the committee which would allow the academy to remain in Gallatin County if it does not come to Helena EXHIBIT 1. He noted that the operating costs are known in Gallatin County as well as there being a relationship with the university and the use of university facilities. Jim Drummond, Bozeman, Montana, representing Bozeman Chamber of Commerce and Gallatin Development Corporation, stated if the academy did not go to Mountain View School, he would like to see the academy remain in the Gallatin Valley. He presented documents pertaining to the Gallatin County site EXHIBITS 2, 3. Marilyn Wessel, Montana State University, testified that if the law enforcement academy is retained in Bozeman, MSU-Bozeman has a long history of cooperation with the academy, and they stand ready to continue that cooperation with facilities and faculty. Governor Marc Racicot, State of Montana, said the state has always supported the academy in Bozeman while located there. He said Gallatin County voters did not approve replacing the temporary headquarters, which then led to a proposal before the long range building committee.
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